THE nation’s economic expansion in 2026 will be led by resilient domestic demand, with private consumption emerging as the central growth driver, according to the World Bank Group, which has upgraded its outlook for the country.
The multilateral lender now expects the economy to grow by 4.4 per cent, up from its earlier estimate of 4.1 per cent, reflecting confidence in household spending supported by improving economic fundamentals.
Its Chief Economist for Malaysia, Apurva Sanghi, said favourable labour market conditions and income growth would sustain consumption momentum throughout the year.
“We expect domestic demand to remain strong this year on the back of favourable labour market dynamics, with real median wages having risen by six per cent last year as well as continued government support when needed.
“Therefore, private consumption is the main contributor to growth,” he told reporters on Thursday.
Sanghi was speaking at a briefing on the April 2026 edition of the Malaysia Economic Monitor, titled ‘Raising the Ceiling, Raising the Floor, Driving Malaysia’s Jobs and Productivity Agenda’.- April 9, 2026
